Wednesday, July 9, 2008
An American bank run?
IndyMac, one of America's biggest mortgage companies, announced yesterday that it is essentially shut to new business. It is selling its mortgage retail branches, and will not be issuing any more loans. They are also axing 3,800 jobs. IndyMac's share price reached a new low of $0.71 (from a high of $31.50 last year.) Now there are scattered reports coming in of an "elevated level of withdrawals" by depositors who are concerned about the safety of their money.